Trump’s Treasury Secretary Falls Apart And Admits It Might Be Years Before Worker Wages Go Up From Tax Cut

Trump Treasury Secretary Steve Mnuchin fell apart and admitted that it might be years before workers see their wages go up from the GOP’s trickle-down tax cut for the rich.

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Transcript via Face The Nation:

DICKERSON: On the wages question, how soon do you think — the argument you make is that, with corporations, the tax is lower, they will pass it on to workers in their wages, and then also they will spend money on plants and equipment. How soon do you think that will…

MNUCHIN: I think we will see that this year.

You already see the stock market at record highs. You see people’s 401(k)s up substantially.

DICKERSON: But that’s not wages. That’s…

MNUCHIN: No, no, I’m just saying you already see companies in anticipation in the market. So you’re going to see trillions of dollars come back, and I think you’re going to see this year wages going up.

DICKERSON: Because Kevin Hassett, who is the chairman of the Council of Economic Advisers, said on this question of when businesses are going to pass this on to the middle class, he said: “If you go to the optimistic vied of the literature, it could take three to five years. If you go to the pessimistic side, it would about double that.”

So that’s optimistic three to five. So, this is being sold as a big Christmas present everybody is going to get, but really this benefit that will pass on in wages and plants and equipment, Kevin Hassett, the president’s — chairman of his economic advisers says three to five years in the best case.

MNUCHIN: Well, that’s three to five years on this $4,500.

The Trump administration always resorts to the same answer when they are asked about wage growth. Sec. Mnuchin talked about the stock market and investments, but what wasn’t able to explain was how this money is going to go from the pockets of the wealthy and corporations into the paychecks of workers. Republicans have always believed in the magic theory that rich people will take their cut and use it raise wages.

When given a tax cut the wealthy and corporations do the opposite. They sit on the money and don’t reinvest it back into the economy. Trickle down economics doesn’t work because the money never trickles down. Trump and the Republicans are giving a big Christmas gift to the wealthy and corporations with this bill. Everyone else is getting a lump of coal.

Jason Easley

Jason is the managing editor. He is also a White House Press Pool and a Congressional correspondent for PoliticusUSA. Jason has a Bachelor’s Degree in Political Science. His graduate work focused on public policy, with a specialization in social reform movements.

Awards and  Professional Memberships

Member of the Society of Professional Journalists and The American Political Science Association